Re: My first card! Now what?

I would stay away from AMEX, at least for the time being. They are very conservative and you don't want to run the risk of taking a hard pull without getting the card. I second the notion of getting a Discover student card. Discover is a fantastic card with excellent rewards and benefits. I highly recommend building a relationship with them.

Re: My first card! Now what?

The advice of taking it slow and steady doesn't hold when one is establishing files to get out of thin file status.

Lovie: add another card or two immediately is my suggestion, then simply sit on your hands for a year with regards to credit applications. It really doesn't matter what they are as long as they report, building payment history is key from where you're at now. Putting off further applications just delays your building of positive tradelines for future FICO goodness.

Where folks tend to go wrong are either:

Not establishing enough accounts out the gate (2-3 is fine)

Establishing a decent set of accounts, and then continuing to apply for a bunch of other things which likewise delays recovery

While indeed credit building is a long-term process, there's no need to drag it out longer than is necessary.

Re: My first card! Now what?

Revelate wrote:

The advice of taking it slow and steady doesn't hold when one is establishing files to get out of thin file status.

Lovie: add another card or two immediately is my suggestion, then simply sit on your hands for a year with regards to credit applications. It really doesn't matter what they are as long as they report, building payment history is key from where you're at now. Putting off further applications just delays your building of positive tradelines for future FICO goodness.

Where folks tend to go wrong are either:

Not establishing enough accounts out the gate (2-3 is fine)

Establishing a decent set of accounts, and then continuing to apply for a bunch of other things which likewise delays recovery

While indeed credit building is a long-term process, there's no need to drag it out longer than is necessary.

Revelate,

thanks so much as ALWAYS for the wise advice. I forget who it was on here that asked why I was in a rush and I have to say- I'm not in any rush. I don't really care about credit cards and I definitely do not get the feeling of "the app itch" that everyone here seems to talk about (though more power to those that do- it sounds like kind of a rush!).

Everyone has their different reasons and goals, but I am interested in building credit for 2 reasons only:

1. When my roommate and I applied to rent our new house I was told that because of my non-existent credit history I would need a CO-SIGNER to get on the lease, and was unable to get any utilities in my name (this is incredibly embarassing at age 33)

2. When I bought my car over the summer the guy at the dealership told me was getting "crushed" on interest, the worst rate he had seen anyone get all year. He said it would probably cost me nearly five thousand over the life of the loan vs. what I would pay with a normal interest rate.

So after 6 weeks on myFico I have refinanced down to 3% on my car, gotten one card from a respectable bank and am happily on the way to becoming an actual grown-up.

And again, I really, really really appreciate the advice Revelate (and others). It is a good feeling to know that I will be able to get simple things like ELECTRICITY when I need them from now on!! This is all I really need from the credit world.

Re: My first card! Now what?

knightlynews wrote:

Congrats! Just curious, how did you raise your score 100 pts in 6 weeks? I'm new to this credit thing also, any tips?

First, I got my only two delinquencies removed by Verizon and Macy's via goodwill requests over the phone (both on Christmas eve, not sure if the reps were just in the holiday spirit). Then I paid down the balances on my revolvers from 80 to 10% (the only reason I was carrying balances in the first place was I thought that would help me build credit- such a fool!). Then I traded in my car with the 10% loan for a better car, which resulted in a paid auto loan (not to mention a new loan with a third of the interest). So, those three things are what did it for me. But my main problem was not delinquencies, it is lack of history. So I think I can make a faster comeback than someone who has a BK or chargeoffs, etc.

Re: My first card! Now what?

Yes, I was surprised at that comment, Citi is certainly in the same class as Chase and Amex

Re converting from student to normal: as Revelate said this usually doesn't really matter as the cards are the same benefits etc. In this case, the non-student Citi Forward is no longer available, so probably not an option anyway!

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.